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DECISION No. 10/2003/QD-BXD OF APRIL 3, 2003 PROMULGATING THE REGULATION ON THE USE MANAGEMENT OF CONDOMINIUMS

THE MINISTER OF CONSTRUCTION

Pursuant to the Government’s Decree No. 15/CP of March 4, 1994 prescribing the functions, tasks, powers and organizational structure of the Ministry of Construction;

Pursuant to the Government’s Decree No. 71/2001/ND-CP of October 5, 2001 on investment preferences for construction of dwelling houses for sale and lease;

At the proposal of the director of the Housing Management Department,

DECIDES:

Article 1.- To issue together with this Decision the Regulation on the use management of condominiums.

Article 2.- This Decision takes effect 15 days after its publication on the Official Gazette.

Article 3.- The ministries, the ministerial-level agencies, the agencies attached to the Government, the People’s Committees of the provinces and centrally-run cities as well as the concerned organizations and individuals shall have to implement this Decision.

Minister of Construction
NGUYEN HONG QUAN

REGULATION ON THE USE MANAGEMENT OF CONDOMINIUMS

(Issued together with the Construction Minister’s Decision No. 10/2003/QD-BXD of April 3, 2003)

Chapter I

GENERAL PROVISIONS

Article 1.- The promulgation of the Regulation on the use management of condominiums aims to:

1. Maintain the quality, architectures, views, environmental sanitation, social order and safety of condominiums, thus contributing to raising the living conditions in condominiums.

2. Define the rights and responsibilities of organizations and individuals in the use management of condominiums.

3. Establish the model of condominium management on the principles of socialization in combination with the State management role of administrations of various levels.

Article 2.- This Regulation applies to assorted condominiums with many owners, including newly-built or re-built condominiums under projects and previously built condominiums.

Article 3.- Interpretation of terms:

In this Regulation, the following terms are interpreted as follows:

1. "Condominiums" mean multi-storied buildings where many households live, with self-contained apartments, common passages and elevators and/or stairs as well as infrastructural systems for common use;

2. "Cluster of condominiums" means a housing complex of two or more condominiums at the same construction location, and of the same investor, or a complex of previously built condominiums;

3. "Investors" mean the owners or persons who are assigned to manage the use of capital and mobilize capital in order to invest in the construction of condominiums according to law provisions;

4. "Privately owned parts" in a condominium include the inside areas of apartments (including balconies and protruding sections affixed with such apartments); and other areas such as shops, kiosks, supermarkets, offices and other parts recognized as being under private ownership according to the provisions of law;

5. "Parts under common ownership" in condominiums include the remaining areas (excluding privately-owned parts mentioned in Clause 4 of this Article); the space and bearing-structure system, and technical equipment for common use in the condominiums (pillar frames, walls, floors, roofs, terrace, corridors, stairs, escalators, emergency exits, rubbish well, technical box and car park; electricity, water and gas supply systems, communication, broadcasting, television, water drainage, sumps, lightning arresters, fire-fighting,...); and outside-building technical infrastructure systems affixed with such condominiums;

6. "Periodical maintenance" of condominiums means the maintenance in prescribed cycles to ensure that structure parts, technical equipment and finished parts shall not be damaged before the prescribed use durations;

7. "Extraordinary repair" of condominiums means the repair not in prescribed cycles, aiming to deal with arising damage;

8. "Privately-owned parts’ owners" in condominiums mean organizations or individuals that have lawful ownership over privately-owned parts mentioned in Clause 4 of this Article as prescribed by law (hereinafter referred collectively to as the owners);

9. "Users of condominiums" mean owners or organizations and individuals that are lawfully using privately-owned parts in condominiums;

10. "Condominium conference" means conference of users of a condominium;

11. "Condominium managing boards" mean the boards set up to represent users of condominiums to supervise activities related to the use management of condominiums (hereinafter referred collectively to as the managing boards);

12. "Condominium-managing enterprises" mean those enterprises set up and operating under law provisions to manage and provide condominium services.

Article 4.- Contents of the use management of condominiums cover:

1. Use management of parts under common ownership;

2. Use management of privately-owned parts;

3. Organization of the management of condominiums;

4. Fundings in service of the management of condominiums;

5. Settlement of disputes and handling of violations;

6. Responsibilities of the People’s Committees of all levels in the use management of condominiums.

Chapter II

USE MANAGEMENT OF CONDOMINIUMS

Section I. USE MANAGEMENT OF PARTS UNDER COMMON OWNERSHIP

Article 5.- Lawful users of condominiums have the rights to equality in the use of commonly-owned parts and the obligations to strictly observe the regulations on use management of condominiums, fully make contributions to the management and provision of condominium services according to the provisions of this Regulation.

Article 6.- The condominium users have the obligations:

1. To observe the internal regulations on use, the stipulations on maintenance and preservation of assets under commonly-owned parts; strictly implement the regulations on fire prevention and fighting, public sanitation, order and security; detect and preclude in time acts of encroaching upon the commonly-used parts in condominiums;

2. Those who damage assets under commonly-owned parts must restore them to the original state or pay compensation therefor;

3. To create favorable conditions for the responsible persons to maintain or repair parts under common ownership. Those who commit acts of obstructing them, thus causing damage to the common interests must pay compensation therefor and be handled according to law provisions;

4. To contribute payable fundings fully and within the prescribed time limit for the management, operation, maintenance and repair of the system of equipment and assets under commonly-owned parts.

Article 7.- The maintenance of condominiums shall comply with the provisions of the Construction Ministry’s Circular No. 05/2001/TT-BXD of August 30, 2001 and other relevant legal documents.

Article 8.- The use, exploitation, maintenance and repair of the system of technical infrastructures and equipment for common use must comply with the instructions of designers and manufacturers as well as the processes and procedures promulgated by competent State agencies.

Article 9.- The use management and exploitation of business and service parts in condominiums must strictly comply with the provisions of this Regulation and other regulations of the competent State agencies.

Section 2. USE MANAGEMENT OF PRIVATELY-OWNED PARTS

Article 10.- Owners shall have their privately-owned parts in condominiums protected by the State according to the provisions of law and this Regulation.

Article 11.- Users of condominiums shall have to maintain, preserve and use their privately-owned parts strictly according to the purposes and design functions thereof as well as the provisions of this Regulation.

Article 12.- Maintenance and repair of privately-owned parts:

1. The owners shall have to maintain or repair their privately-owned parts. The owners may perform this themselves or hire others to do so, but such must not affect the safety, views and architectures of condominiums. Where the users are not the owners but wish to repair parts under private ownership, they must obtain the owners’ written consents.

2. The maintenance and repair must comply with the following regulations:

2.1. To notify 05 days in advance the contents and tempo of the work to the concerned Managing Boards. If the maintenance or repair affects the neighboring apartments, they must arrange such work at appropriate time and notify the neighboring households of the work schedule. Where they must hire others to do the work, they must notify the Managing Boards of the list of individuals to be hired for the maintenance or repair;

2.2. Users of condominiums and those who are hired to conduct the maintenance or repair must maintain common sanitation; if they damage part under common ownership or parts under private ownership of others, they must restore them to the original state or pay compensation therefor.

2.3. The maintenance or repair of privately-owned parts must ensure the uniformity and synchronism of the whole condominiums.

Section 3. STRICTLY PROHIBITED ACTS

Article 13.- Condominium users are strictly prohibited to commit the following acts:

1. To build extensions, appropriate areas and space under commonly-owned parts in any form; perforate, transform, dismantle or change the bearing structure, technical infrastructures and equipment for common use, the outside architectures of condominiums; to damage assets in commonly-owned parts;

2. To cause noises beyond the prescribed levels, thus affecting order and security of condominiums;

3. To wantonly discharge rubbish, waste water, waste gas and hazardous substances; cause permeation, leakage or environmental pollution; to rear livestock or poultry in areas under the common ownership;

4. To make advertisements, inscriptions and/or paintings contrary to regulations or commit other acts not permitted by law. To change structure or design of privately-owned parts (to build partitions on floors, remove equipment and technical system affixed to commonly-owned parts, perforate apartments, build extensions in any form);

5. To use or permit others to use privately-owned parts against the prescribed purposes;

6. To rear livestock or poultry in privately-owned areas, thus affecting order, beautiful looks and living environment of other households and public areas (the rearing of ornamental animals must strictly observe law provisions);

7. To engage in production and business lines as well as assorted goods easily causing fire and/or explosion (welding, gas and explosive materials as well as other dangerous production and business lines);

8. To provide services causing noises and/or environmental pollution (karaoke bars, dancing-halls, motorcycle and/or automobile repair; livestock slaughtering and other polluting services).

Chapter III

ORGANIZATION OF THE MANAGEMENT OF CONDOMINIUMS

Article 14.- Responsibilities of investors:

1. To notify and guide those who wish to purchase or rent condominium apartments on the regulations on the use management of condominiums prescribed in this Regulation so that they firmly grasp them before selling or leasing condominium apartments.

2. After selling and leasing over 80% of the total apartments in a condominium, to assume the prime responsibility and coordinate with the administrations and public security bodies of local wards, communes or townships as well as users in organizing the condominium Conference in order to elect the Managing Board. The investors shall have to prepare relevant contents and submit them to the Conference for consideration and decision (the draft regulations on use of condominiums, expected personnel of the Managing Board, fundings to be contributed);

3. Pending the setting up of the Managing Board, to undertake the performance of the Managing Board’s functions prescribed in Article 16 of this Regulation;

4. To formulate plans and organize (or hire units having the legal person status) the maintenance of commonly-owned parts of condominiums (except for the renovation and maintenance prescribed at Points 1.1 and 1.2, Clause 1, Article 19 of this Regulation, which shall be conducted by the condominium-managing enterprises).

The contents of maintenance and capital sources for the maintenance of commonly-owned parts of condominiums shall comply with the Construction Ministry’s Circular No. 05/2001/TT-BXD of August 30, 2001 guiding the maintenance of constructions;

5. To guide the use of equipment in condominiums and organize professional training courses on the use management of condominiums for members of the Managing Board as well as concerned organizations and individuals.

Article 15.- Organization of the management of condominiums:

1. The condominium-managing enterprises shall undertake the management and provision of condominium services through contracts signed with the Managing Board;

2. Where the condominium-managing enterprises are not available in localities, the investors shall have to undertake the management and provision of condominium services.

Article 16.- The Managing Board:

1. The Managing Board shall represent users of a condominium to protect legitimate interests of the users in such condominium;

2. Each complex of dwelling houses shall be synchronous, self-contained and have separate boundaries; each condominium cluster or each independent condominium may set up a Managing Board;

3. The Managing Boards are composed of representatives of users, investors, managing enterprises and public security bodies of local wards, communes and townships. Each Managing Board must have at least 03 (three) members representing the users, who are elected on the principle of majority. Each condominium in a condominium complex built previously or in a condominium cluster must have at least 01 (one) representative of users participating in the Managing Board. Public security bodies of local wards, communes and townships; investors and managing enterprises shall each nominate 01 (one) representative to participate in the Managing Board. The Managing Board’s members shall elect the head who shall administer activities in the assigned term. The Managing Board’s term shall be 03 years (36 months) at most.

4. The Managing Boards shall have the tasks:

4.1. To monitor and supervise the maintenance of condominiums according to regulations;

4.2. To formulate the regulations on the use of condominiums, suitable to the specific situation and conditions of the condominiums and the provisions of this Regulation in order to submit them to the Condominium Conferences for consideration and approval. To coordinate with the condominium-managing enterprises in organizing regular and irregular meetings of the Condominium Conferences;

4.3. To collect and synthesize the users’ comments and petitions related to the use management and provision of condominium services in order to coordinate with relevant organizations and individuals in considering and settling them;

4.4. To sign contracts with the condominium-managing enterprises for the performance of management and the provision of services; to supervise activities of the condominium-managing enterprises according to the contents of the signed contracts;

4.5. To coordinate with local administrations and population groups in order to build a civilized lifestyle and maintain the social order and safety in condominiums assigned to them for management;

4.6. To perform other works assigned by the Condominium Conferences.

5. The Managing Boards shall have the rights:

5.1. To select the condominium-managing enterprises; to sign contracts with the condominium-managing enterprises; and to cancel contracts in cases where such enterprises fail to strictly observe the commitments;

5.2. The Managing Board members shall enjoy responsibility allowances according to the regulations of the Condominium Conference.

Article 17.- Condominium Conference:

1. The Condominium Conference must be attended by at least 70% of representatives of the users of such condominium, at the same time by representatives of investors (or the condominium-managing enterprises) as well as representatives of local administrations and public-security bodies of wards, communes and townships. The Condominium Conference shall be organized annually. In case of necessity, the Managing Boards may convene extraordinary Condominium Conferences;

2. A Condominium Conference is organized to:

2.1. Elect, add or replace the Managing Board’s members;

2.2. Approve the use regulations and regulations related to the contents of the use management of the condominiums;

2.3. Review and evaluate results of implementation of the Regulation on use management of condominiums;

2.4. Decide on other relevant necessary matters.

Article 18.- The condominium-managing enterprises:

1. The condominium-managing enterprises are set up and operate under the law provisions;

2. The investors may set up the condominium-managing enterprises in order to undertake the management and the provision of condominium services prescribed in this Regulation;

3. The condominium-managing enterprises may receive contracts for use management and provision of services to many condominiums in one or different localities; coordinate with the Managing Board in considering and deciding on ceasing the provision of service activities to households which fail to make contributions as prescribed or intentionally violate the regulations on the use management of condominiums; coordinate with the Managing Boards in settling problems arising in the use management and the provision of condominium services (if any);

4. The condominium-managing enterprises shall perform the contents of use management of condominiums prescribed in Article 19 of this Regulation according to the contracts signed with the Managing Boards.

Article 19.- Contents of the use management of condominiums cover:

1. Use management:

1.1. To manage the use, renovate and maintain equipment for common use in condominiums (escalators, water-pumping stations, electric generators, water supply and drainage system and other equipment);

1.2. To manage the use, renovate and maintain the areas and space under common ownership in condominiums (corridors, stairs, walls, ceilings, roofs and other parts);

1.3. To manage and preserve condominium documents and dossiers;

1.4. To examine and urge relevant subjects to implement regulations;

1.5. Other relevant management contents.

2. Service works:

2.1. Security and order maintenance; bicycle, motorcycle and car watch; public sanitation, rubbish collection;

2.2. Operation of the system of equipment for common use (water pumps, escalators, electric generators and other equipment);

2.3. Tending of flower gardens and lawns around condominiums (if any);

2.4. Other relevant services (if any).

Chapter IV

FUNDINGS IN SERVICE OF THE USE MANAGEMENT OF CONDOMINIUMS

Article 20.- Fundings in service of the use management of condominiums mean expenses necessary for the performance of management, exploitation and operation of equipment system in order to ensure conditions on security, order and sanitation as well as efficiently use commonly-owned parts of condominiums.

Article 21.- Subjects liable to make funding contributions:

Those who are directly using apartments (or other privately-owned parts) in condominiums shall have to contribute fundings in service of the use management of such condominiums.

Article 22.- Fundings to be contributed:

1. Fundings for the use management of condominiums mentioned in Clause 1 of Article 19 and the service works mentioned at Points 2.2, 2.3 and 2.4, Clause 2, Article 19 of this Regulation shall be jointly determined by the Managing Boards and the condominium-managing enterprises, then submitted to the Condominium Conferences for consideration and approval;

2. Security and order charges; charges for bicycle, motorcycle and car watch; and sanitation charges mentioned at Point 2.1, Clause 2, Article 19 of this Regulation shall comply with the provisions of the Government’s Decree No. 57/2002/ND-CP of June 3, 2002 detailing the implementation of the Charge and Fee Ordinance (the levels of collection of these charges shall be set by the provincial-level People’s Councils);

3. Irregular service charges such as expenses for use of public phones, hire for watching assets and other expenses (if any) shall be agreed upon by the service providers and service users themselves;

4. Allowances for the Managing Board members (except for those members appointed to participate therein by investors and managing enterprises) shall comply with the regulations of the Condominium Conferences.

Article 23.- Management and use of contributed fundings:

1. Monthly, condominium users shall have to contribute the fundings prescribed in Clauses 1 and 2, Article 22 of this Regulation to the condominium-managing enterprises; the fundings prescribed in Clause 4, Article 22 of this Regulation to the Managing Boards;

2. The condominium-managing enterprises may use the funding sources contributed by the condominium users according to the provisions of the finance legislation;

3. The Managing Boards shall have to monitor and supervise the financial collection and spending in service of the use management of condominiums.

Chapter V

SETTLEMENT OF DISPUTES AND HANDLING OF VIOLATIONS

Article 24.- Settlement of disputes:

1. Disputes related to ownership in condominiums shall be settled by courts;

2. Disputes over the use right in condominiums shall be settled on the basis of conciliation (households shall conciliate themselves or the Managing Boards, the local ward, commune or township People’s Committees shall organize the conciliation). If such disputes cannot be conciliated, they shall be brought to courts for settlement;

3. Disputes related to the use management, operation, exploitation, renovation and repair in condominiums shall be settled on the basis of conciliation. If such disputes cannot be conciliated, the Managing Board shall have to consider and settle them according to their competence prescribed in this Regulation or report them to the local administrations for consideration and settlement;

4. Disputes over economic contracts arising in the course of use management and provision of condominium services as prescribed by this Regulation shall be handled according to the provisions of the legislation on economic contracts.

Article 25.- Handling of violations:

1. Those who violate the regulations on the use management of condominiums as prescribed by this Regulation shall, depending on the seriousness of their violations, be administratively handled or examined for penal liability according to law provisions;

2. Those who commit acts of covering up or creating conditions for others to violate the regulations on the use management of condominiums contrary to the provisions of this Regulation shall, depending on the seriousness of their violations, be disciplined or examined for penal liability according to law provisions. In cases where material damage is caused, they must pay compensation therefor.

Chapter VI

RESPONSIBILITIES OF THE PEOPLE’S COMMITTEES OF ALL LEVELS FOR THE USE MANAGEMENT OF CONDOMINIUMS

Article 26.- Responsibilities of the People’s Committees of the provinces and centrally-run cities:

1. To create conditions and support fundings for the maintenance of condominiums in order to maintain the quality, architecture and views of condominiums in their respective localities which are suitable to the actual situation of each locality;

2. To direct relevant functional agencies in carrying out the reception and management, exploitation and operation of infrastructure system (outside the condominiums) in projects on dwelling houses and new urban areas strictly according to the contents approved by the competent authorities;

3. To consider and decide on the assignment of responsibilities for administrative management of condominiums in their respective localities;

4. To promulgate the mechanism for encouraging the development of the condominium-managing enterprises so as to meet the demands for use management and provision of condominium services in localities; to review and evaluate the situation of the use management of condominiums in localities in order to determine the efficient management model, and make appropriate commendations and/or rewards in time according to their respective competence;

5. To handle violations according to their competence.

Article 27.- Responsibilities of the People’s Committees of the provincial cities and towns as well as urban and rural districts:

1. To monitor, examine and detect problems arising in the use management of condominiums in order to handle them according to their respective competence or report them to the People’s Committees of the provinces or centrally-run cities for consideration and settlement;

2. To propose the People’s Committees of the provinces and centrally-run cities to approve the assignment of responsibilities for administrative management of condominiums as well as management, exploitation and operation of infrastructure systems in projects on dwelling houses or urban areas in localities as assigned by the provincial-level People’s Committees;

3. To make commendations/rewards and handle violations according to their respective competence.

Article 28.- Responsibilities of the ward, commune and township People’s Committees:

1. To monitor, examine and settle problems arising in the use management of condominiums according to their respective competence or report them to the superior competent agencies for consideration and settlement;

2. To coordinate with the Managing Boards of condominiums in localities in settling problems arising in the use management of condominiums;

3. To create favorable conditions for and support the condominium-managing enterprises in well performing the management and the provision of condominium services in localities;

4. To make commendations/rewards and handle violations according to their respective competence.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 29.- This Regulation takes effect 15 days after its publication on the Official Gazette.

All previous regulations on the management and use of dwelling houses applicable to condominiums, which are contrary to this Regulation, are hereby annulled.

For projects with different types of dwelling houses, synchronous infrastructure systems and protection fences determining separate boundaries, the investors may base themselves on this Regulation’ contents to specify the use management of dwelling houses and infrastructure systems therein to suit the practical situation.

Any difficulties or problems arising in the course of implementation of this Regulation should be promptly reported to the Ministry of Construction for consideration, amendment and/or supplementation.

Article 30.- To assign the Housing Management Department to assume the prime responsibility and coordinate with relevant functional agencies in guiding and implementing this Regulation; to sum up the concerned agencies’ reports on arising problems and study the appropriate amendment and/or supplementation of this Regulation; to coordinate with local functional agencies and investors in organizing training courses on the use management of condominiums for the Managing Boards as well as concerned units and individuals nationwide.

Minister of Construction
NGUYEN HONG QUAN